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Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. Direct materials standard (6 lbs. @

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance.

Direct materials standard (6 lbs. @ $2/lb.) $12 per finished unit
Actual direct materials used 249,050 lbs.
Actual finished units produced 41,000 units
Actual cost of direct materials used $495,660

A. $2,440 unfavorable.

B. $3,660 unfavorable.

C. $2,440 favorable.

D. $6,100 unfavorable.

E. $3,660 favorable.

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